To businesses today strategic planning is not just an idea, it defines a way to build a brand, customer loyalty, produce and grow long-term revenues which enables an organization to achieve its objectives. (David, F., 2014) Strategic management is a fundamental part of business which assists in sustainability of the business and helps create value for a business. Without the right mix of strategic planning a business can lose market share to their competitors; hence profits. Since 1994, Amazon has been paving the way for both e-commerce and traditional brick and mortar retail companies.
It was 1995 when Amazon opened its virtual doors for business. Since its inception Amazon has become the world’s largest e-commerce retailer by diversifying its portfolio. Amazon operates retail sites for twelve different countries. (Amazon.com, 2014) Amazon consists of over fifteen lines of business such as AmazonPrime, AmazonSupply and AmazonWarehouse Deals. Amazon reports their income in American and International segments. The segments are split into media, electronics and “other” which is described as “non-retail activities”. (Amazon.com, 2014) This paper will evaluate Amazon’s strategic planning.
Amazon was born out of the dot.com era when the home computer and internet service providers (ISPs) started to emerge. (Schulz, K., 2013) With the birth of ISPs the internet grew in popularity. Mr. Bezos realized the enormous potential of the internet and envisioned running his own company. Therefore quit his job as a Vice President at D.E Shaw investment management to start his own business. Mr. Bezos founded Amazon in 1994. Originally, Amazon was an online book store that operated out of Mr. Bezos’ Bellevue, Washington home and ga...
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